Washington Deficiency Judgment Law

Foreclosures in Washington can be conducted by judicially and non-judicially, but the most common method is a non-judicial foreclosure pursuant to a deed of trust.   A deficiency is created when a lender forecloses on a property and receives less than what was owed on the property.  A deficiency judgment is created when a lender sues and gets a judgment on the amount still owed on the loan after the foreclosure.  When a foreclosure sale is conducted by a trustee pursuant to a deed of trust, Washington has a very clear and concise law regarding deficiency judgments.  

Washington Revised Code § 61.24.100 states that in a non-judicial foreclosure, a deficiency judgment is prohibited if the foreclosure was on a residential homestead property.  

This provision only relates to non-judicial foreclosures.  A deficiency may be obtained if the foreclosure was conducted via a judicial foreclosure.  If you live in Washington and are facing a foreclosure, please speak to an attorney in your area should you have questions regarding a potential deficiency.

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